In a recent case, the assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 14th March 2023, for the assessment year 2011-12. The appeal was initially delayed by three days, but the assessee submitted an application for condoning the delay. After reviewing the application, the delay was found to be due to genuine reasons, not negligence. As a result, the delay was condoned, and the appeal was admitted for hearing on its merits.
The case involved an assessment order passed under Section 147 read with Section 144 of the Income Tax Act, 1961, with the CIT(A) dismissing the assessee’s appeal in an ex-parte manner. The facts revealed that Shri Harish Chand had sold immovable property in the financial year 2009-10 for Rs. 4,21,95,000. The sale deed was registered on 30th April 2010, during the assessment year 2011-12. Based on information from the Annual Information Report (AIR), the Assessing Officer (AO) issued a notice under Section 148 of the Income Tax Act on 23rd March 2018. However, Harish Chand passed away on 25th September 2015, and his son, Subhash Chand, became the legal heir.
Since no one responded to the notice, the AO completed the assessment under Section 144 and added Rs. 3,37,56,000 on account of Long Term Capital Gains. In response to the assessment order dated 12th November 2018, the assessee filed an appeal with the CIT(A), but due to non-compliance, the CIT(A) dismissed the appeal in an ex-parte order.
Further review showed that Harish Chand had three sons, and the sale proceeds of the agricultural land were intended to be divided among them. However, this claim remained unverified. In light of the facts, the appeal was sent back to the AO for de novo assessment, ensuring the assessee would have a fair opportunity to present their case in compliance with the law.
The assessee was instructed to provide the AO with their current address and email ID within 30 days, especially if there was a change in address since the original records.
As a result, the impugned order was set aside, and the appeal was allowed for statistical purposes. This case highlights the importance of timely responses to notices and the opportunities provided by the legal syste
Citation: Legal heir of late Shri Harish Chand, 64 Rori Pargana Jalalabad, Modingar, Ghaziabad, Uttar Pradesh 201201 PAN: EDQPS-6317-K Vs National Faceless Appeal Centre, Income Tax Officer, Ward 1(3)
Link of the Judgement: https://itat.gov.in/public/files/upload/1733312907-e6yMrs-1-TO.pdf
